NEW YORK, March 19, 2019 /PRNewswire/ -- S&P Dow
Jones Indices and Experian released today data through February 2019 for the S&P/Experian Consumer
Credit Default Indices. The indices represent a comprehensive
measure of changes in consumer credit defaults and show that the
composite rate rose two basis point from last month to 0.92%. The
bank card default rate rose six basis points to 3.48%. The auto
loan default rate remained unchanged at 0.99%. The first mortgage
default rate was one basis point higher at 0.70%.
Four of the major MSAs showed higher default rates compared to
last month. The rate for New York
increased 6 basis points to 1.05%, while the rate for Chicago rose four basis points to 0.92%. The
default rate for Los Angeles was
up two basis points to 0.51%. The rate for Dallas was one basis point higher at 0.90%,
while the rate for Miami decreased
12 basis points to 2.07%.
After seven straight months of decline, bank card default rates
have now increased for three consecutive months. This upward trend
has been the primary contributing factor to the concurrent increase
in the composite default rate, which has seen its rate increase for
five straight months. All default rates are lower compared to 12
months ago.
"This month's data show that four of the five cities tracked as
well as all consumer credit default categories were higher in
February," says David M. Blitzer,
Managing Director and Chairman of the Index Committee at S&P
Dow Jones Indices. "This is more of a seasonal shift than a sign of
rising default rates. Over the last several years, December,
January and February have all experienced increases in default
rates across cities and loan categories. Further, none of the
figures suffered large increases compared to their levels of one
year ago. Retail sales saw strong gains in January and auto sales
continued at an annual rate of about 16.5 million vehicles. Any
upward pressure on mortgage defaults stemming from the rise in home
prices over the last few years is being offset by weakened sales of
new and existing homes.
"The overall economy is not expected to put any pressure on
consumers' financial condition. Employment and job growth continue
to be quite strong and wages have recently seen some gains. The
economy is settling into a stable growth path with anticipated GDP
gains of 2% to 2.5% by most analysts in 2019. Two perennial sources
of anxiety for economists and consumers are inflation and the
unemployment rate. Inflation remains around 2% and the unemployment
rate is at or below 4% in recent data. As long as these figures
remain steady, the Fed isn't likely to shift interest rates and
consumers should not have difficulty paying their bills, which
could keep default rates close to current levels."
The table below summarizes the February
2019 results for the S&P/Experian Credit Default
Indices. These data are not seasonally adjusted and are not subject
to revision.
S&P/Experian
Consumer Credit Default Indices
|
National
Indices
|
Index
|
February 2019
Index Level
|
January 2019
Index Level
|
February 2018
Index Level
|
Composite
|
0.92
|
0.90
|
0.96
|
First
Mortgage
|
0.70
|
0.69
|
0.72
|
Bank Card
|
3.48
|
3.42
|
3.64
|
Auto Loans
|
0.99
|
0.99
|
1.09
|
Source:
S&P/Experian Consumer Credit Default Indices
|
Data through February
2019
|
|
The table below provides the S&P/Experian Consumer Default
Composite Indices for the five MSAs:
Metropolitan
Statistical
Area
|
February 2019
Index Level
|
January 2019
Index Level
|
February 2018
Index Level
|
New York
|
1.05
|
0.99
|
0.94
|
Chicago
|
0.92
|
0.88
|
1.15
|
Dallas
|
0.90
|
0.89
|
0.89
|
Los
Angeles
|
0.51
|
0.49
|
0.64
|
Miami
|
2.07
|
2.19
|
1.54
|
Source:
S&P/Experian Consumer Credit Default Indices
|
Data through February
2019
|
For more information about S&P Dow Jones Indices, please
visit www.spdji.com.
ABOUT THE S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES
Jointly developed by S&P Dow Jones Indices LLC and Experian,
the S&P/Experian Consumer Credit Default Indices are published
on the third Tuesday of each month at 9:00
am ET. They are constructed to track the default experience
of consumer balances in four key loan categories: auto, bankcard,
first mortgage lien and second mortgage lien. The Indices are
calculated based on data extracted from Experian's consumer credit
database. This database is populated with individual consumer loan
and payment data submitted by lenders to Experian every month.
Experian's base of data contributors includes leading banks and
mortgage companies, and covers approximately $11 trillion in outstanding loans sourced from
11,500 lenders.
For more information, please visit:
https://www.spindices.com/indices/indicators/sp-experian-consumer-credit-default-composite-index.
ABOUT S&P DOW JONES
INDICES
S&P Dow Jones Indices is the largest global resource for
essential index-based concepts, data and research, and home to
iconic financial market indicators, such as the S&P
500® and the Dow Jones Industrial Average®.
More assets are invested in products based on our indices than
products based on indices from any other provider in the world.
Since Charles Dow invented the first
index in 1884, S&P DJI has been innovating and developing
across the spectrum of asset classes helping to define the way
investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE:
SPGI), which provides essential intelligence for individuals,
companies and governments to make decisions with confidence. For
more information, visit www.spdji.com.
ABOUT EXPERIAN
Experian is the world's leading global information services
company. During life's big moments – from buying a home or a car,
to sending a child to college, to growing a business by connecting
with new customers – we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organizations to prevent identity fraud and crime.
We have more than 16,000 people operating across 37 countries
and every day we're investing in new technologies, talented people
and innovation to help all our clients maximize every opportunity.
We are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global
content hub at our global news blog for the latest news and
insights from the Group
FOR MORE INFORMATION:
David Blitzer
Managing Director and Chairman of Index Committee
New York, USA
(+1) 212 438 3907
david.blitzer@spglobal.com
Ray Mcconville
North America Communications
New York, USA
(+1) 212 438 1678
soogyung.jordan@spglobal.com
Jordan Takeyama
Experian Public Relations
(+1) 714 830 7561
jordan.takeyama@experian.com
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